Financial Structure of Listed Construction Materials Firms: The Case of Vietnam

• Main Author: 阮玉好
• Other Authors: Yeh, Ron Chuen
• Format: Others
• Language: en_US
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/y24awk

碩士 === 美和科技大學 === 企業管理系經營管理碩士班 === 105 === By analyzing the correlation coefficient Pearson (r) between the independent variables of the sample from 42 enterprises in the construction industry listed, we can see that most of the independent variables representing the initial identified factors were linearly related to debt ratio with the different directions and extent of impact. The impact factors are: firm scale (revenue), capital structure (fixed assets ratio), business performance (ROA), growth (growth of assets), and liquidity (current ratio), business risk (coefficient of ROA). Result of linear regression analysis by Backward method with the support of SPSS software is the model: Debt ratio = -0499 + 0.110Sales - 0.333CS - 0.703CR + 0.068Risk From the model, we can conclude that there are four variables having linear relationship with the debt ratio. They are sales, capital structure, the current liquidity ratio, risk. The model can explain 73.6% the changes in debt ratio with the significance level α = 5%. Four variables respectively represent four elements: firm scale, asset structure, liquidity, business risks. In particular, based on the standardized coefficient beta, the most influential factor is the liquidity, followed by asset structure, company’s size and finally business risks. Current ratio has opposite effect to the debt ratio means that in terms of other factors constant, the current ratio increases by 1 unit, the debt ratio will decrease 0.703 units. Assets structure is measured by the proportion of fixed assets. When other factors do not change, the structure of assets increased by 1 unit, the debt ratio will reduce 0.333 units. This conclusion contrasts to the assumptions given in section 3.1.2 which is higher proportion of fixed assets, higher debt. This can be clarified by tighten lending policies of many banks to minimize bad debts. Banks should not focus only on fixed assets but also specially attention on the performance because it is the source of debt repayment.